Asset Division

Both parties need to remember that almost everything they have acquired during the marriage is considered to be marital conjugal property. In theUnited States, there are two different divorce standards: equitable distribution and community property distribution. Currently, there are 10 states that applies the community property distribution, while 41 applies the equitable distribution.

Chicagoemploys the equitable distribution standards.

Often, the couple may decide to just distribute their property by themselves, without the need of a mediator. If they do leave this to the court, with the equitable distribution standards, the family court judge will seek to make an equitable distriubution of the assets and debts. However, just because the word “equitable” is here, the word doesn’t mean equal. There are several things that the court would consider before making the distribution. These include: the length of marriage, age, health, and income of the two parties, tax consequeances of any award, the standard of living of both parties during the duration of the marriage, whether one party has contributed to the increased earning potential of the other party, whether either party has significant non-marital assets, and whether one parent would be awarded as primary custodian.

There are four kinds of properties: non-marital property, marital propery, is an asset marital or non-marital, and marital debts.

With non-marital property, these are excluded from the distribution process. Like say, one spouse owned a house or a property prior to the marriage, a gift from one party to another, inheritances received by one party during the marriage, or property sold or disposed in good gaith. These also includes property that is excluded by a valid pre-nuptial agreement.

With marital property, the marital assets, including property and income acquired dyring the marriage, can be considered a marital property. An asset may be considered a marital asset, even if the said asset has been acquired in only one spouse’s name, for as long as the asset was acquired during the marriage, and has not been listed as one purchased with non-marital assets. Marital assets include the home, a family business, retirement accounts, furniture, investments, and cars that have been purchased during the duration of the marriage.

Some assets though may have both marital and non-marital components, thus they belong to the is asset marital or non marital. For example, while a non-marital property may be excluded from the division, it can be argued that the asset has increased in value during the marriage, thus it may be considered a marital asset.

Marital debts are simply debts that have been accumulated during the marriage, but before the date of the final date of separation. These kinds of debts include mortgages,credit card balances, obligations, and judgments.